Frequently Asked Questions
What are the rates?
Your interest rate will depend on a variety of factors, most notably your FICO score and credit payment history. Rates change daily from the top lenders, and Community West Mortgage receives updates throughout the day. We will secure the best rate you qualify for from a top lender in the shortest amount of time as we can.
How much are closing costs?
This is the second most frequently asked question of our loan officers. Closing costs are where most mortgage brokers charge their fees and there are standard fixed costs attached to the closing of your loan, such as lender fee, underwriting fee, closing fee charged by the title company, title insurance, government recording fee, and your escrows. These fees will vary depending on what mortgage loan is secured for you.
How long will it take to close my loan?
Each loan is different, but the quicker we can get the proper documentation and credit scores the faster the loan closes but usually the least amount of time is three weeks. Community West Mortgage shops the loan directly to the top 25 lenders and secures your best rate in the shortest time frame. Many times we can lock in your rate before the closing is set up, thus ensuring you the peace of mind that your rate is secure.
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How do I choose between a 15 year or 30 year loan?
Evaluate your goals short and long term. Do you need more cash now, then a 30 year might be better because of the lower monthly payment. The 15 year mortgage has many advantages, interest charges you'll pay over 15 years are about half of those with a 30 year loan. Your situation is unique and your Community West Mortgage personal loan officer will help you decide what is best to achieve your goals.
What is the difference between Fixed and Adjustable rates (ARM)?
With a Fixed rate mortgage your interest payment is locked in at a specific unchanging rate for the life of your mortgage. Your monthly payments will be the same for whatever term (15yr/30yr). An Adjustable rate (ARM) mortgage follows or lags the changing interest rates and the rate is adjusted up or down depending on current economic market conditions. An Adjustable rate (ARM) can be considerably lower than a Fixed rate mortgage. There are 3/1 and 5/1 ARM programs available. After careful analysis you and your Community West Mortgage loan officer can decide which best fits your needs and goals.
What are Escrows?
Your Escrow account is money held by your mortgage lender for the benefit of paying your property taxes and homeowners insurance, using your money. You may have to deposit with them a sum of money to pay your property taxes and homeowners insurance. The two main reasons your mortgage lender wants to make sure these items are current, are if your taxes are not paid your property could be sold by authorities to collect for property taxes, or if your house suffers damage of any kind, it must be repaired to the value at least the same as the mortgage loan. In some cases the lender may require an escrow of your taxes and insurance when refinancing your current mortgage. These charges are collected monthly through your monthly mortgage payment in addition to the principal and interest.
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What are points?
A point is a fee associated with closing costs. 1 point equals 1% of the loan amount. Points may also referred to as origination fee or discount points, depending on the purpose. They can be used to compensate your loan consultants, or in some cases to pay the lender for completing the loan. Your Community West Mortgage loan officer will go over all the points and associated costs, and insure the highest cost-savings to you. A lot of times this can be a tax deductible charge, check with your tax consultant.
Why do I need an appraisal?
The appraisal is what determines the fair market value of your property. This value will determine what value your mortgage loan is compared to your home's value. This is the LTV (loan to value) of your loan. Appraisals are conducted by state licensed personnel. Certain types of mortgages do not require an appraisal. Many second mortgages do not require a current appraisal. An appraisal is usually good for 12 months.
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Do I need an attorney to close my loan?
No. This is a highly regulated industry where the forms and lenders follow standardized procedures. If you feel more comfortable with your attorney reviewing the documents, then by all means get the advice.
Can I consolidate my credit card debt, auto loan etc. into my mortgage?
Yes! By consolidating your consumer debt (credit cards, auto loans etc.) you can lower your current monthly payments. A debt consolidation may just be what you need to get you back on firm financial ground. Use the equity in your home and make it work for you.
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